But Velasquez was actually drawn to the Citi gig because he thought it would make him stand out if he applies for a job later at Google.

Like other young talent, Velasquez has become disillusioned by post-crisis Wall Street. He sees a better future in the California lifestyle and seemingly limitless potential offered by Silicon Valley firms.

'I like Google's innovation. I like working on products that will actually change the world. I don't think Wall Street has that appeal right now,' said Velasquez, 22, who is attending the University of Massachusetts, Amherst.

Banks plot pay rises: Big banks have figured out that if they want students like Velasquez to come work for them, they have to do more. That's why they're scrambling to boost their compensation packages for young talent.